Volkswagen Ag · XETR:VOW
Volkswagen — H1 2024 Earnings Presentation
56 slides from Volkswagen's earnings presentation, Aug 1, 2024
Slide 1: Volkswagen AG Investor, Analyst and Media Call H1 2024
Volkswagen AG Investor, Analyst and Media Call H1 2024 August 01, 2024
Slide 2: Disclaimer
Disclaimer The following presentations as well as remarks/comments and explanations in this context contain forward-looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal envir
Slide 3: Key developments / Financials
1 Key developments 2 Financials
Slide 4: Solid underlying financial performance and strong progress along strategic priorities
Solid underlying financial performance & strong progress along strategic priorities in demanding first half 2024 4
Slide 5: Financial Overview
Financial Overview Solid underlying performance in H1 with strong sequential improvement in second quarter Group Revenue Group Return on Sales Automotive Net Cash Flow H1/2024 € 158.8bn 6.3% -€ 0.1bn +1.6% y-o-y 7.1% underlying1 Q2/2024 € 83.3bn 6.6% € 2.9bn +4.1% y-o-y 7.6% underlying1 1. Adjusted
Slide 6: Strong Brands
WY) Commercial BENTLEY Vehicles STRONG B&B BRANDS & NAVISTAR
Slide 7: Volkswagen Group Deliveries
Volkswagen Group Deliveries Deliveries at 4.35m vehicles, market share gains in North and South America Deliveries [‘000 units / per month] 900 2023 2024 800 700 600 500 400 01 02 03 04 05 06 07 08 09 10 11 12 Global deliveries in H1 BEV deliveries in H1 Worldwide at 4.35m vehicles decreased by 1% Y
Slide 8: BEV Deliveries Year-to-date
BEV Deliveries Year-to-date Strong BEV growth in China compensates for softer market demand in Europe and the US Top BEV Models Quarterly Development BEV Deliveries [‘000 units] BEV share [%] 2024 BEV share [%] 2023 ID.4/5 Enyaq 87k 29k 9-11% 7% 8% 9% 10% 7% 8% ID.3 Born 18k 66k 181 136 122 60 Q4 e-
Slide 9: Strong progress along key strategic priorities
Strong progress along key strategic priorities Volkswagen Group Top 10 Program 2024 01 02 03 04 05 Performance Products Regions Digitalization Software 06 07 08 09 10 Architectures Battery Mobility Sustainability Team & Solutions Organization 9
Slide 10: Volkswagen Group - Performance
Volkswagen Group - Performance Consistent implementation of measures to enhance efficiency and productivity VW AG Information & consultation Continued focus on severance program process started at reducing investment spend - launched in Q2 2024 Audi Brussels site Rivian JV as next trigger 10
Slide 11: Volkswagen Group - Products
Volkswagen Group - Products Largest product renewal offensive continuing at full speed, strengthening competitiveness Q1 Q2 Q3/Q4 Q6 etron Macan A6 e-tron A5 Audi Q5 CUPRA Terramar VW Transporter Panamera Taycan 911 11
Slide 12: Volkswagen Group - Regions
Volkswagen Group - Regions Important progress achieved on key initiatives in Region China ZONALS CENTRAL COMPUTERS ZONALS Xpeng cooperation expanded, Successful launch of Audi & SAIC to jointly China Electronic Architecture ID.UNYX targeting develop next-gen ICVs with in all local VW models from ‘26
Slide 13: Volkswagen Group - Software
Volkswagen Group - Software Gaining speed, enhancing competitiveness and reducing cost via smart partnerships Harman/Kardon Semiconductors Apps ADAS Connectivity & ADAS Infotainment E/E architectures and CARIAD with key role in Global sharing vehicle software ADAS, infotainment, connectivity, of bes
Slide 14: Volkswagen Group - Platforms & Architectures
Volkswagen Group - Platforms & Architectures A technological leap for electric mobility: the PPE and the E³ 1.2 electronic architecture Macan Q6 etron Global Market Launch PPE designed & developed High-tech, highly scalable: Market launch by Audi and Porsche setting standards in Q2 2024 (Macan) from
Slide 15: Financials Volkswagen Group
1 Key developments 2 Financials Volkswagen Group
Slide 16: Financial Overview
Financial Overview Solid H1 results supported by improved operational performance in Q2 Vehicle Sales Sales Revenue Operating Result and Margin [m vehicles] [€ bn] [€ bn] Margin [%] Fair value of derivatives outside hedge accounting1 +2% 158.8 7.3% 6.3% 156.3 -11% 11.3 10.1 -2% 4.4 4.3 13.9 10.1 1.
Slide 17: Reconciliation from Reported to Underlying Operating Result
Reconciliation from Reported to Underlying Operating Result Reported Operating Result held back by non-operating factors of in total ~€ -0.9bn / 100bps net in Q2 Operating Result & Margin Non-Operating Factors impacting Q2 Results [€ bn] Margin [%] Restructuring: 6.6% 7.6% -€ 1.0bn restructuring, i
Slide 18: Automotive Net Cash Flow and Net Liquidity
Automotive Net Cash Flow and Net Liquidity Q2 Net Cash Flow of € 2.9bn almost compensating for negative Q1 2024 Rep. Net Cash Flow [CCR]1, 2 'Clean' Net Cash Flow1, 3 Net Liquidity1 [€ bn] [€ bn] [€ bn] -22% 40.3 -86% 31.3 2.5 3.4 27% 0.5 -0.1 Jan-Jun Jan-Jun Jan-Jun Jan-Jun 31 Dec 30 Jun 2023 2024
Slide 19: Automotive Net Liquidity
Automotive Net Liquidity Financial position at solid level despite to muted NCF and dividend payments Reported Net Cash Flow (-€ 0.1bn)1 Clean NCF (€ 0.5bn)1 40.3 -0.4 0.9 -0.3 -0.3 -5.2 -1.3 -2.4 31.3 thereof ~€ 7.7bn outflows from inventory build-up thereof -€ 0.9bn Rivian and -€ 0.5bn FS reorgani
Slide 20: Operating Result by Division
Operating Result by Division Passenger Cars affected by severance provision - strong performance of Commercial Vehicles Automotive Division Financial Services Division Passenger Cars1 Commercial Vehicles2 Financial Services Operating Result [€ bn] Operating Result [€ bn] Operating Result [€ bn] Marg
Slide 21: Operating Result Passenger Cars
Operating Result Passenger Cars Results affected by severance provision; underlying operational performance solid Operating Result Operating Result [€ bn] Margin [%] -0.1 -9% 7.1 3.8 -3.4 6.5 7.1 6.5 -1.0 Thereof: Volume & other: +0.9 Mix: -1.1 Price: -0.8 6.7% 6.2% Jan-Jun Jan-Jun Jan-Jun Volume &
Slide 22: Overhead Cost Development
Overhead Cost Development Group overhead cost1 Group overhead cost1 [as % of Automotive revenue] TRATON [in €bn] Power Engineering1 [in €bn] Passenger Cars [in €bn] 19.5% 17.2% 15.9% 15.6% 17.0% 41.4 42.6 1.2 40.0 1.0 1.2 5.2 6.6 6.1 20.3 22.0 0.6 0.6 35.0 34.8 3.2 3.5 32.8 16.6 17.8 2019 2022 2022
Slide 23: Automotive Investment Ratio
Automotive Investment Ratio Spend levels peaking in 2024 R&D / Capex – Absolute and Ratio (Automotive Division) [in % of automotive sales revenues, € bn] CAPEX R&D ∑ 13.5% ∑ 13.5% - 14.5% ∑ 13.4% € 36.1bn ∑ 12.1% € 17.3bn € 15.8bn ∑ <11.0% 4.6% 5.4% 4.3% € 5.9bn € 14.4bn € 5.6bn 8.1% 8.8% € 21.8bn 7
Slide 24: Brand Groups
1 Key developments 2 Financials Brand Groups
Slide 25: Overview H1 2024 Brand Groups
Overview H1 2024 Brand Groups Strong sequential improvement at BGP and BGSL; BGC impacted by severance provision Core Progressive Sport Luxury Sales Revenue [€ bn] 69.1 (flat) 30.9 (-9%) 17.7 (-6%) Operating Result [€ bn] 3.5 (-8%) 2.0 (-42%) 2.9 (-21%) Operating Margin [%] 5.0 (-0.5ppts)2 6.4 (-3.6
Slide 26: Brand Group Core
Brand Group Core Reported versus Underlying Operating Result H1/2023 H1/2024 reported reported underlying 1 Brand Group Core 3,773 | 5.5% 3,462 | 5.0% 6.0% Volkswagen Brand 1,641 | 3.8% 966 | 2.3% 3.6% ŠKODA 911 | 6.6% 1,149 | 8.4% 8.4% SEAT/CUPRA 371 | 5.0% 406 | 5.2% 5.3% VW Commercial Vehicles 44
Slide 27: Overview H1 2024 Technology Platforms
Overview H1 2024 Technology Platforms Operating results and investments in software and battery stabilized Software Battery Sales Revenue [€ bn] 0.4 (+30%) - (-) Operating Result1 [€ bn] -1.2 (-0.1) -0.2 (flat) Operating Margin [%] - (-) - (-) Net Cash Flow [€ bn] -0.4 (+0.4) -0.4 (+0.1) -1.5 underl
Slide 28: Brand Group Trucks – TRATON
Brand Group Trucks – TRATON 1 Continued strong earnings momentum despite softer demand and vehicle sales Key Takeaways Favorable product mix and better ARPU overcompensate lower vehicle sales (-4%) Sales Revenue [€ bn] 22.7 (+2%) Continued strong profitability driven by topline growth and Operating
Slide 29: Volkswagen Group Mobility
Volkswagen Group Mobility Key Takeaways Slight increase of contract volume; credit loss ratio remains on solid level Continued normalization of Contracts [‘000 units] 25,852 (+2%) used car prices and operating result Operating Result1 [€ bn] 1.4 (-36%)³ -€ 0.2bn one-off FX valuation effect from deco
Slide 30: China Joint Ventures: Proportionate Operating Result
China Joint Ventures: Proportionate Operating Result Half-year results 30% below previous year, in line with full year outlook ∑ 3,280 Key Takeaways ∑ 3,026 722 ICE leadership strengthened ∑ 2,621 Q4 1,064 Operating results lower YoY due to 741 VCTC ramp-up, NEV Co. 1,156 consolidation and fierce Q3
Slide 31: Outlook for 2024
Volkswagen Group Outlook for 2024 Actual YTD Outlook FY/2023 H1/2024 FY/2024 Sales Revenue € 322.3bn € 158.8bn (+2%) up to 5% growth YoY Operating Margin 7.0% 6.3% 6.5% to 7.0% Automotive Investment Ratio1 13.5% 13.4% 13.5% to 14.5% Automotive Reported Net Cash Flow € 10.7bn -€ 0.1bn € 2.5bn to € 4.
Slide 32: Key Takeaways
Key Takeaways 1 Solid underlying financial performance in demanding H1 2024 4 Stringent execution of regional strategies 2 Accelerating speed and enlarging scope of restructuring measures 5 Substantial model launch momentum in H2 and 2025 3 Comprehensive E/E architecture and software strategy in pla
Slide 33: Financial Calendar 2024
Financial Calendar 2024 Volkswagen Group Q2 / H1 2024 Financial Results August 01, 2024 Volkswagen Group Q3 / 9M 2024 Pre Close Conference Call October 14, 2024 Volkswagen Group Q3 / 9M 2024 Financial Results October 30, 2024 33
Slide 34: Backup
VOLKSWAGEN GROUP Backup
Slide 35: Volkswagen Group Deliveries by Region
Volkswagen Group Deliveries by Region Continued strong growth in North & South America, China lower in line with expectation Europe North America +2% +8% 2023 2024 China 2023 2024 -7% South America +15% 2023 2024 2023 2024 35
Slide 36: Non-operating effects on Operating Result in Q2 2024
Non-operating effects on Operating Result in Q2 2024 Severance program (VW AG) -€ 251m Holding Fair value of derivatives outside hedge accounting +€ 407m1 Fair value of derivatives outside hedge accounting (BGP) -€ 28m1 o/w - € 228m from valuation effects of residual values and + € 200m from FX & ra
Slide 37: Operating Result excluding valuation effects from fair values of derivatives
Operating Result excluding valuation effects from fair values of derivatives outside hedge accounting Operating Result1 [€ bn] Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 0.7 7.1 1.2 6.8 6.3 5.6 Reported operating profit1 4.9 0.0 4.9 4.6 0.4 5.0 5.5 0.4 5.1 Fair value of derivatives outside hedge accoun
Slide 38: Volkswagen Group H1 – Analysis by Brand and Business Field
Volkswagen Group H1 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 Brand Group Core 2,494 2,450 69,051 68,764 3,462 3,773 5.0 5.5 Volkswagen Passenger Cars 1,5
Slide 39: Volkswagen Group Q2 – Analysis by Brand and Business Field
Volkswagen Group Q2 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Brand Group Core 1,302 1,257 36,277 35,601 1,352 2,031 3.7 5.7 Volkswagen Passenger Cars 824
Slide 40: Volkswagen Group Q1 – Analysis by Brand and Business Field
Volkswagen Group Q1 – Analysis by Brand and Business Field VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Brand Group Core 1,192 1,193 32,773 33,163 2,110 1,742 6.4 5.3 Volkswagen Passenger Cars 695
Slide 41: ID. UNYX
GROUP VOLKSWAGEN ID. UNYX 41
Slide 42: Volkswagen Golf R
VOLKSWAGEN GROUP Volkswagen Golf R ys 42
Slide 43: Volkswagen Passat
VOLKSWAGEN GROUP Volkswagen Passat
Slide 44: Volkswagen Tiguan
VOLKSWAGEN GROUP Volkswagen Tiguan 44
Slide 45: ID.Buzz
VOLKSWAGEN GROUP |ID.Buzz
Slide 46: ID.7 Tourer
VOLKSWAGEN GROUP |D.7 Tourer
Slide 47: Cupra Tavascan
VOLKSWAGEN GROUP Cupra Tavascan a7
Slide 48: Audi S5 Avant
VOLKSWAGEN GROUP Audi S5 Avant 48
Slide 49: Porsche 911 Carrera
Porsche 911 Carrera 49
Slide 50: Lamborghini Revuelto
VOLKSWAGEN GROUP Lamborghini Revuelto
Slide 51: Bentley Continental GT
VOLKSWAGEN GROUP Bentley Continental GT
Slide 52: Range / consumptions / emissions
Range / consumptions / emissions Fuel consumption Electrical consumption CO2 emissions Electric range Model combined (WLTP) combined (WLTP) combined (WLTP) combined (WLTP) VW ID.UNYX The vehicle is not offered for sale in the EU and is therefore not subject to Directive 1999/94/EC. Golf GTE The vehi
Slide 53: Range / consumptions / emissions
Range / consumptions / emissions Fuel consumption Electrical consumption CO2 emissions Electric range Model combined (WLTP) combined (WLTP) combined (WLTP) combined (WLTP) Porsche Macan S n/a 21,1 - 17,9 kWh/100 km n/a 516 - 613 km Taycan Turbo S n/a 18.8-16.6 kWh/100 km n/a 558 - 630 km Porsche Tay
Slide 54: Range / consumptions / emissions
Range / consumptions / emissions Fuel consumption Electrical consumption CO2 emissions Electric range Model combined (WLTP) combined (WLTP) combined (WLTP) combined (WLTP) Audi Q4 e-tron 55 n/a 16.8 – 19.5kWh/100 km n/a 449 - 523 km Q6L e-tron n/a 17.5 – 18.4 kWh/100km n/a 566 – 598 km Q8 55 e-tron
Slide 55: Useful links
Useful links Volkswagen Group Brands Group Investor Relations Homepage Volkswagen Financial Services IR Homepage Volkswagen Group IR Presentations Audi IR Homepage Volkswagen Group at a Glance Porsche AG IR Homepage Group Capital Markets Day 2023 TRATON IR Homepage China Capital Markets Day 2024 Vol
Slide 56: Volkswagen Group
VOLKSWAGEN GROUP